Business China

Rules for Selecting a Logistics Partner For Your Company in China

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The complicated business environment of China can make it difficult for foreign investors to create an efficient value chain for their business. Many supply chain issues can be solved simply by selecting a good logistics partner. Logistics are an integral part of any supply chain, and your partner for the job can make or break your whole business structure. Follow these rules to make sure that you choose the right logistics partner.

Don’t Rush the Decision

Choosing a logistics partner is one of the most important business decisions you’ll be making. The success of your business depends on the efficiency of your logistics partner. An efficient logistics provider can improve response times, reduce average costs, and improve customer satisfaction levels. So choose wisely.

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Look at the Provider’s Capabilities

Logistics have, in recent times, integrated with IT to a great extent. The flow of goods and monitoring and recording them now depends on computer systems. If your logistics provider doesn’t have modern ERP systems and other software for effective warehousing and transiting, look elsewhere. Here are the things you need to check:

  • Average error rates
  • Response times
  • ERP Systems
  • E-tagging systems
  • Past performance
  • Automation levels
  • Size and scale of operations

Compare Rates and Services

Being a well grown economy, you’ll probably find many good logistics providers in China. The decision should then come down to rates their rates for the provided services. Choose one that provides the greatest value for the least costs.

WFOE in China

Central China

Central China provides better infrastructure for logistics activities. The roads and railways allow for quick transit of cargo and distribution, and the warehousing infrastructure is comparatively more efficient.

Import/Export Capabilities

Check whether the logistics provider has import/export licensing or not. International logistics are completely different than inland logistics, and require extra capabilities as well as legal clearances from relevant authorities like customs and clearance.

Make Visits

Logistics operations are an on-field job and all the operations other than accounting take place in a practical manner. The only way to properly judge the efficiency of your logistics provider is to visit places of operation. See the warehousing systems, inspect the means of transportation and all other relevant parts of the logistics process.

Business Services in China

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